In this blog post I’ll explore how to get life insurance with the premium locked in to age 100, why it would or would not make sense for you to consider a policy to age 100, as well as discuss pricing for policies with level premiums to age 100 as compared to alternative term periods. You can compare rates for yourself right below using our quote tool, or keep reading for more on term to 100 life insurance.
Life Insurance Level Term Options
When you buy a term life insurance policy your options are usually between a 10 year, 15 year, 20, 25 or 30 year policy. Most people will find that one of these options will help them get the coverage that they need during the years they need it most. For example many people under 50 will choose a 20 or 30 year policy, while those over 50 may find that a 10 or 15 year policy meets their needs.
However there are times when people want to make sure that they have a policy that lasts for a longer period of time. Maybe it’s to leave money to cover final burial expenses, or just leave an inheritance to children or other family members. Others have longevity in their family history and want to have a policy that covers them well into their 90s or longer.
In instances of someone looking for a policy that guarantees premiums remain the same until age 100 there is an option, however it isn’t a term policy.
Universal Life with No Lapse Guarantee Rider
A Universal Life Policy with a No Lapse Rider is a life insurance policy that can have premiums that are guaranteed never to go up. Policies exist with options to lock in the rate to age 90,95,100 or even 121. This type of permanent life insurance is essentially the same as term insurance, except that the premiums are locked in for a longer period of time.
While a universal life with no lapse rider can build up some cash value, it really isn’t designed to build up significant cash value the same way a whole life policy is designed. The result is a cheaper policy than whole life, while providing coverage on a permanent lifetime basis.
Pros and Cons of Universal Life with No Lapse Guarantee
When compared to a term life policy a Guaranteed Universal Life policy is more expensive. However it is a form of permanent life time coverage with premiums that are guaranteed never to rise. In addition these policies are much cheaper than whole life policies.
Which Companies to Consider for Guaranteed Universal Life
There are several companies that offer competitive rates for these types of policies:
North American Company for Life & Health
Mutual of Omaha
Pricing for Guaranteed to Age 100 Policies
How does pricing differ between a term policy and a guaranteed universal life policy?
Let’s take an example of a 50 year old male at Preferred Plus Non Tobacco for a $250,000 policy. We’ll compare rates between 20 year term, 30 year term, and a Guaranteed Universal Life to age 100 policy:
- 20 year term: $43.28 Monthly with SBLI
- 30 year term: $69.17 Monthly with SBLI
- Guaranteed Premiums to age 100 – $158.86 with Protective Life.
You can see that a guaranteed life time policy in this case is about 3 times the price of a 20 year term, and about twice the amount of a 30 year term.
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